Financial wellness tips for educators in 2025

The start of a new year is an opportune time for educators to reassess their financial wellness and set meaningful goals for 2025.

 

Trudy Jenkins, a Certified Financial Planner® with NGS Super, notes that educators face unique financial challenges, which, when combined with rising living costs, mean that adopting a few proactive strategies can help boost long-term financial security.

 

In the piece below Ms Jenkins has shared some actionable tips to help educators optimise their financial planning for the year ahead:

 

1. Plan for seasonal income variations and term breaks

 

For some early childhood teachers, or for educators who work in casual or contract roles, income fluctuations are an important consideration in terms of overall cashflow. 

 

Steps to consider:

 

• Setting aside funds during blocks of work and creating a dedicated savings fund for school holidays (if applicable) to cover income gaps.

 

• Building an emergency fund with 3-6 months’ worth of expenses to cover unexpected costs or lean periods.

 

• Saving a portion of that income for long-term goals like superannuation contributions or paying down debt.

 

“Being mindful of the ebbs and flows in income and expenses can help you avoid financial stress and stay on track throughout the year,” Ms Jenkins said.

 

2. Claim tax deductions and reimbursements

 

Working in the early childhood education and care (ECEC) space may mean that educators incur significant out-of-pocket expenses that are deductible at tax time.

 

“Keeping detailed records of your work-related expenses could save you money and help you maximise your returns,” Ms Jenkins explained. 

 

ECEC professionals may be eligible to claim deductions for:

 

• Classroom supplies like stationery, teaching aids, and decorations.
• Professional development courses and conferences.
• Union fees and professional association memberships.
• Travel expenses for attending off-site training or work-related activities.

 

3. Leverage salary sacrifice to build your super

 

Salary sacrifice, she continued, is a tax-effective way to grow your superannuation while reducing your taxable income. 

 

Even small contributions can make a big difference over time, thanks to the power of compounding. For ECEC professionals who may have limited opportunities for rapid salary growth, this strategy can significantly enhance retirement savings over the longer term.

 

Here Ms Jenkins recommends that the ECEC workforce takes advantage of employer co-contributions if their income is within the eligibility threshold for the longer-term benefits of consistent contributions.

 

4. Maximise your investment choices

 

Superannuation isn’t just a savings account; it’s an investment tool that can grow significantly over time, she continued. 

 

ECEC professionals often have access to diversified options within their super fund, ranging from conservative to growth-focused portfolios.

 

“Consider reviewing your super investment options annually to ensure they align with your financial goals and risk tolerance,” Ms Jenkins continued. 

 

“This proactive approach can help educators make the most of market conditions and stay on track for a comfortable retirement.”

 

By taking these proactive steps, educators can navigate 2025 with confidence, establishing a strong financial foundation for the years ahead. 

 

NGS Super offers tools, webinars, and personalised advice tailored to ECEC professionals. For more insights and personalised advice, visit NGS Super’s website.

 

Trudy Jenkins is authorised to provide financial advice in Australia and is an Authorised Representative (Number 1234906) of Guideway Financial Services Pty Ltd, ABN 46 156 498 538 AFSL Number 420367.

 

Any advice given in this article is general and does not consider your financial situation, needs or objectives so consider whether it is appropriate for you. Be sure to read the relevant PDS and TMD before deciding whether a financial product is right for you.